Longtime thought leader and client partner on corporate ESG programs, priorities and progress, Thompson Hine LLP has released its third ESG survey report, “The ESG Shuffle,” which measures and analyzes corporate experiences with ESG as this complex concept begins its turn from voluntary to mandatory compliance requirements. This year’s report follows our 2021 and 2022 versions.
“While we will likely not see true regulatory alignment for quite some time, we are seeing companies tracking the significant shift from a truly voluntary ESG framework to looming mandatory disclosures,” said Thompson Hine partner Heidi Friedman, co-chair of the firm’s ESG Collaborative. “Despite continuing challenges, companies are paying attention, taking the time to become educated and compiling the resources necessary to develop their programs and goals.”
Highlighted Corporate ESG Trends Explored in the Report
- Reporting is on the rise, with a confluence of reporting frameworks seemingly converging to Task Force on Climate-related Financial Disclosures (TCFD) as a best practice and, in some cases, a requirement.
- Many companies are turning to tracking and reporting using a double materiality standard.
- The rise in greenwashing and reverse discrimination litigation cases is prompting companies to refine or narrow their focus on certain ESG goals.
- Global companies (especially in the EU) are encountering the most challenges, with broader international regulations piled atop already challenging federal and state requirements.
- Private companies are contemplating a more cautious, reactive approach rather than a proactive one while still grappling with increasing ESG expectations across their supply chains.
- Diverse challenges remain front and center to the general ESG concept such as increasing resentment and negative sentiment.
- Companies continue to struggle with conflicting reporting requirements, data collection difficulties and resource issues (human and financial).
“Notably, this year’s survey responses demonstrated a level of sophistication, including the continuing maturity of corporate ESG programs and the growing knowledge of running those programs, that we have not seen in previous survey iterations,” said Jurgita Ashley, co-chair of the firm’s ESG Collaborative. “This parallel corporate evolution will add value and allow companies to prepare for the mandates that are coming.”
Thompson Hine is committed to staying on top of significant business trends and continuously innovating to meet its clients’ evolving needs. The firm’s ESG Collaborative is a multidisciplinary team of lawyers with practical legal and business knowledge to help clients develop, implement and fine-tune ESG strategies. The group uses proprietary SmartPaTHTM tools, significant investments in technology and strategies such as legal project management, flexible staffing and value-based pricing to help clients achieve their objectives while providing enhanced value and predictability.